Leasing Solar Panels - A Smart Solar Financial Option

Thinking about going solar but unsure about the upfront cost? For UK homeowners, landlords, and commercial property owners, leasing solar panels offers an affordable and hassle-free entry point into renewable energy.

In a time of rising energy prices, increasing environmental awareness, and growing government regulations like EPC targets, solar energy is more appealing than ever. But purchasing panels outright isn't always financially viable. This is where solar leasing becomes a powerful alternative.

Whether you're looking to improve your home’s EPC rating, reduce your business’s carbon footprint, or boost tenant satisfaction without the capital expense, this guide will break down everything you need to know. From how leasing works to potential savings and key considerations, we’ll explore whether leasing solar panels in the UK is the right fit for your property or portfolio.

Let’s dive in.

What Is Solar Panel Leasing and How Does It Work in the UK?

Solar panel leasing allows property owners to use solar energy without buying the system outright. Instead, you lease the panels from a provider for a fixed monthly fee or share in the generated energy savings.

How leasing works (step-by-step):

1. Site assessment: A provider inspects your roof and energy usage.
2. Lease agreement: You sign a contract (typically 20–25 years).
3. Installation: The company installs and maintains the system.
4. Usage: You benefit from reduced electricity bills.
5. End-of-term options: Renew lease, remove panels, or buy at market value.

Is Leasing Solar Panels a Good Option for UK Homeowners?

Yes — leasing solar panels can be an excellent option for UK homeowners who want to reduce their energy bills without the significant upfront cost of purchasing a system outright.

It provides immediate access to clean energy and can improve your property’s energy performance certificate (EPC) rating, all while the leasing company handles installation and maintenance.

What are the benefits of leasing solar panels for homeowners?

• No upfront investment: Ideal for families on a budget.
• Immediate savings: Lower monthly electricity bills.
• Improved EPC ratings: Enhances property value and marketability.
• Low-risk: Maintenance and performance are usually guaranteed by the provider.

Are there any drawbacks?

• Limited access to Smart Export Guarantee (SEG): In most cases, the provider claims SEG payments.
• Less long-term financial gain: Compared to purchasing, the ROI is lower over 20–25 years.
• Lease constraints: Could impact resale if future buyers are unwilling to take over the lease.

What Should Landlords Know About Leasing Solar Panels?

Leasing solar panels offers landlords a strategic way to enhance their rental properties' energy efficiency and comply with increasingly strict EPC regulations, all without major capital expenditure. It can also improve tenant satisfaction and reduce property void periods, making it a valuable long-term investment strategy.

Why should landlords consider solar leasing?

• Boost EPC compliance: Essential under MEES (Minimum Energy Efficiency Standards).
• Increase rental appeal: Tenants increasingly prefer energy-efficient homes.
• Avoid upfront costs: The Lease structure enables improvements without capital expenditure.
• No maintenance headaches: The leasing company typically handles servicing.

Key considerations for rental properties:

• Lease transferability: Ensure the lease allows smooth transfer to new tenants or property owners.
• Tenant cooperation: Installation requires access to the property.
• Permission and planning: Some properties, especially in conservation areas, may require local authority approval.

Can Commercial Properties Benefit from Leasing Solar Panels?

Absolutely. Leasing solar panels can help commercial property owners significantly cut operational energy costs, improve sustainability credentials, and meet corporate ESG goals — all with minimal risk and no upfront investment. It's especially advantageous for businesses looking for scalable, budget-friendly renewable energy solutions.

Why is solar leasing attractive for businesses?

• Fixed energy costs: Protects against volatile energy prices.
• Carbon reduction goals: Supports ESG and net-zero targets.
• Tax advantages: Leasing costs may be deductible as operating expenses.
• Scalable solutions: Large roof space = larger systems = bigger savings.

Key industries seeing ROI from solar leases:

• Warehouses & logistics hubs
• Manufacturing plants
• Retail chains
• Office buildings

Key influencing factors:

• Roof orientation and shading
• Local energy tariffs
• System size and efficiency
• Seasonal generation variations

Are There Government Incentives for Leasing Solar Panels?

While government grants like the ECO4 scheme focus on ownership, there are still ways solar leasing users benefit:

• Zero VAT on solar installations (including leased systems until March 2027)
• EPC rating improvements, which affect property value and lettings eligibility
• SEG payments: Some lease models allow shared export profits

Trusted bodies to consult:

What Should You Check Before Signing a Solar Lease Agreement?

Before signing any lease agreement, it’s crucial to fully understand the terms, costs, and responsibilities involved.

Not all solar leasing contracts are equal, and a poor agreement could limit your flexibility or potential savings. Being diligent at this stage helps avoid future complications and ensures you get the full benefit of the system.

Key contract terms to review:

• Lease duration and exit clauses
• Who gets SEG payments
• Maintenance and performance guarantees
• Panel ownership at lease-end

Ask these questions before signing:

• Can the lease be transferred if I sell the property?
• What happens if the system underperforms?
• Who handles repairs and replacements?

Final Thoughts

Leasing offers a flexible, low-barrier route into solar energy for UK homeowners, landlords, and commercial property owners. It’s particularly valuable for those who want to cut energy bills, enhance property value, or meet EPC and sustainability targets without the large upfront expense of purchasing a system outright.

While leasing doesn’t provide the same long-term return as owning a solar PV system, the benefits — including reduced electricity costs, professional maintenance, and performance guarantees — make it a practical solution for many.

If you're ready to explore your options or want tailored advice on the best solar solution for your property, our expert team is here to help.

Frequently Asked Questions

Can I switch energy suppliers if I lease solar panels?

Yes. Leasing panels doesn’t lock you into an energy supplier. You can still switch providers to find the best electricity rates, just like you would without solar.

Does leasing solar panels affect my roof warranty?

It can. Always check your roof’s warranty terms before installation. Some warranties may be voided by drilling or structural changes, so discuss this with both your installer and roofing company.

Can I still get a battery storage system with leased panels?

In some cases, some leasing providers offer battery add-ons for an extra fee. However, not all agreements allow for storage, so ask your installer before signing.

Is credit checking required for a solar lease?

Usually, yes. Most solar leasing companies in the UK perform a soft credit check to assess eligibility and payment reliability, but this won’t affect your credit score.